Pep Boys - Manny, Moe & Jack Meets on the Top Line, Misses Where it Counts

Just the facts, Fool.

Seth Jayson
Seth Jayson
Sep 5, 2012 at 12:00AM
Other

Pep Boys - Manny, Moe & Jack (NYSE: PBY) reported earnings on Sep. 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 28 (Q2), Pep Boys - Manny, Moe & Jack met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share grew significantly.

Gross margins dropped, operating margins shrank, net margins expanded.

Revenue details
Pep Boys - Manny, Moe & Jack logged revenue of $525.7 million. The three analysts polled by S&P Capital IQ foresaw revenue of $528.3 million on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $522.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.12. The three earnings estimates compiled by S&P Capital IQ averaged $0.16 per share. GAAP EPS of $0.61 for Q2 were 135% higher than the prior-year quarter's $0.26 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.8%, 110 basis points worse than the prior-year quarter. Operating margin was 3.2%, 140 basis points worse than the prior-year quarter. Net margin was 6.3%, 360 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $534.1 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $2.11 billion. The average EPS estimate is $0.38.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 165 members out of 211 rating the stock outperform, and 46 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Pep Boys - Manny, Moe & Jack a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pep Boys - Manny, Moe & Jack is outperform, with an average price target of $10.00.

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